Secondary Aluminium Makers to Raise Scrap Buy Price around Nagoya

Secondary alloyed aluminium makers around Nagoya apparently decided to raise the aluminium scrap purchase price by 20 yen per kilogram for all grades for January from December. They increase the price under high level offshore primary aluminium ingot price, lower scrap generation and high level alloy products demand. The offshore primary aluminium ingot price increased to more than US$ 2,350 per tonne at settlement price of London Metal Exchange in the year though the price was between US$ 2,250-2,300 in December 2005. The aluminium scrap generation decreases around Nagoya due to higher export of used car and fewer automobile scrap while building and local scrap generation also decreases due to asbestos issues and heavy snow. The aluminium scrap demand is firm when aluminium alloy makers increase output to meet higher output of automobile. The aluminium scrap market keeps tight supply. Local aluminium scrap market price keeps increasing. Local alloyed aluminium makers try to secure requirement even at higher price. The makers decided to increase the purchase price by 20 yen per kg for January from December. A source of maker said the tight scrap market would keep the tight supply and price increase.